Following a range of brokerage reactions to the company’s Q2 results, including cautious attitudes from Jefferies and Morgan Stanley and positive remarks from Nomura and CLSA, Tech Mahindra shares dropped as much as 1.6 percent in Wednesday’s opening session. In the first transaction, Tech Mahindra’s shares dropped to a low of Rs 1,445 before making a minor recovery. Prior to the results report, the stock finished 1.2 percent higher on the NSE on Tuesday at Rs 1,468.90.
Tech Mahindra Q2 Results Trigger Market Volatility in Stock Price
Prior to the results report, the stock finished 1.2 percent higher on the NSE on Tuesday at Rs 1,468.90.
Due in large part to the lack of a one-time gain from the sale of land during the previous year, IT services giant Tech Mahindra reported a 4.5 percent year-over-year fall in consolidated net profit to Rs 1,195 crore for Q2 FY26. Operations revenue increased 5.1% to Rs 13,995 crore, driven by the company’s robust manufacturing and banking sectors. Revenue and net profit both increased sequentially by 4.8 and 4.7 percent, respectively. With an October 21 record date, the business announced an interim dividend of Rs 15 per share.
Brokerages presented a mixed outlook on Tech Mahindra shares following the Q2 FY26 results.
Nomura maintained a ‘buy’ rating with a target price of Rs 1,670 per share, highlighting solid performance across key parameters and steady progress in Tech Mahindra’s ongoing three-year turnaround plan.
CLSA gave a ‘high-conviction outperform’ call, although it slightly reduced its target to Rs 1,695, citing strong margin performance and better visibility on the company’s FY27 EBIT target of 15%.
On the other hand, Jefferies assigned an ‘underperform’ rating with a target of Rs 1,270, noting that while margins and revenue were on track, profits were impacted by foreign exchange losses. The brokerage expects strong deal wins to support H2 FY26 but views a growth recovery in FY27 as unlikely.
Morgan Stanley, with an ‘underweight’ call and a target of Rs 1,555, pointed to positives like deal momentum and margin gains but cautioned that weak deal conversion and macroeconomic headwinds could limit overall growth.
Brokerages are still split on whether the turnaround progress warrants a re-rating, and the company is now trading at about 18 times FY27 expected profits.
Disclaimer: Business Connect experts’ opinions and financial advice are their own and do not represent the website’s or its administrators’. Before making any financial decisions, Business Connect suggests that users consult with qualified professionals.
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